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Introduction E-Commerce is firmly established: –1997: $500M –2001: $50B –First big online retailer –New business model: no brick-and-mortar.

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Presentation on theme: "Introduction E-Commerce is firmly established: –1997: $500M –2001: $50B –First big online retailer –New business model: no brick-and-mortar."— Presentation transcript:

1 Introduction E-Commerce is firmly established: –1997: $500M –2001: $50B –First big online retailer –New business model: no brick-and-mortar store, no oversized inventory. Transition period for traditional stores: –Is the expense of setting up internet support? –How to combine online and traditional sale? Product lies? –How to sell to people who aren’t physically there? Current state: –Effectively all products available online –New modes of shopping combines online and brick-and-mortar stores. –Some products can be sold 100% on internet: video, music, software, stocks.

2 How to Protect Yourself Shop with merchants you know and trust. Read delivery, return, and privacy policies. Ensure the page is https://.... And locked padlock or unbroken key. Use a credit card, not a debit card – you can get your money back. Hit the Order Now button only once. Never send credit card info via email (not secure). Keep a record of your transactions. Use a shopping bot.

3 Security: Encryption and Certificates Retailers realized early on that security was the key to successful e- business. Messages passing through the net can be read by anyone. Encryption encodes your data prior to send it from your machine to the net. –Secure Sockets Layer – a protocol defining how secure data is handled. –https:// indicates a page that will send ecrypted data. Certificates –A web server set up to protect sensitive data is provided with a certificate. –The certificate is used to encrypt your data in a manner unique to that server. –The certificate can also act as a check that the actual server you are reaching belongs to the business you are trying to do business with.

4 Self-Regulation Should the government coerce security measures from online retailers or should they self-regulate? Government: The idea is that the government has a responsibility to protect citizens from deceptive or faulty practices. Self-regulation: The idea is that businesses realize they need to offer secure practices to gain the trust required for people to buy online. For the most part, the business community is ahead of government regulation. There is a conflict between business need to advertise effectively and the right to privacy (spyware issue).

5 Online Auctions Acts like a traditional auction – with minor details changed to adapt to online environment and take advantage of automated process. Three (+ 1) forms: Customer to customer Business to customer Business to business Reverse auctions (I want to buy, who will sell at best price?) Auction sites make money from fees paid by sellers. Use safe practices to the degree it is possible: 87% of fraud complaints were regarding online auctions. Keep records, use a pay policy that is reversible (PayPal), make sure of sites encryption policies. Buyer Beware!

6 Bartering and Freecycling Bartering exchanges good and services directly instead of involving monetary payment. Barter sites (like auction sites) list offerings and needs. Individuals can work out bargains between themselves, or an offer may be advertised with an acceptable “cost.” Tax repurcussions: Services and goods you receive for partering are “payment” and legally taxable. Freecycling sites literally recycle products by giving them away. –Offerers advertise what they have to give away. –Others advertise something they are looking for. –Exchange of money, goods, services is NOT allowed.

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